Risks on Centralized Exchanges and the Importance of Decentralized Wallets
As crypto investors face risks on centralized exchanges and seek opportunities like earning airdrops from applications, many are turning to decentralized wallets to regain control over their assets. However, ensuring the security of these wallets presents a serious challenge.
Understanding Revoke and Rabby
Revoke and Rabby have issued an important warning about the latest scam method targeting wallet users. MetaMask and Trust Wallet are popular platforms that provide enhanced security for investors. These platforms allow users to remove suspicious permissions from their wallets, preventing potential victimization by scammers who have interacted with their wallets through fraudulent contracts.
Scamming with Fake Tokens
If you notice a suspicious approval or receive a fake token via airdrop in your wallet, it’s crucial to take steps to minimize your risk. One option is to use platforms like Revoke and Rabby to clear suspicious permissions. However, scammers have developed a new method to deceive users.
A few years ago, with the rise of gas fees on Ethereum, “gas tokens” were introduced. These tokens leveraged a feature that allowed the refunding of gas while cleaning storage. Users could mint gas tokens when fees were low and burn them when fees were high, effectively “locking” the lower fee. However, this feature was made unimplementable with EIP-3529 in 2021, but some other EVM Chains, such as the BNB Chain, still retain this concept.
How the Scam Works
Scammers create fake tokens through airdrops and generate fake approvals for these tokens, leading victims to believe they need to cancel them. However, these fake tokens are programmed to mint a large number of gas tokens during the cancellation process. The scammers then sell these gas tokens, leaving victims paying high fees without actually sending any funds from their wallets.
Protecting Yourself from Scams
To protect yourself from this new scam method, it’s important to be aware of the following:
- When canceling permissions, be cautious of a gas fee that is 100 times higher than normal.
- Gas tokens or fake tokens received through airdrops often lack proper logos.
By paying attention to these two factors, you can determine whether you’re being targeted by scammers using this new method. If you encounter such a problem, avoid paying an exorbitant transaction fee to cancel fake permissions. It’s crucial to remain skeptical and vigilant when using decentralized wallets, as scammers may continue to develop more sophisticated methods in the future.
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